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Segment Information | 9 Months Ended
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Jun. 30, 2017
Segment Reporting [Abstract] |
Segment Information | Segment Information During the second fiscal quarter of 2016, we reorganized our operations around four global lines of business (“LOB”), which also serve as our operating segments: Petroleum & Chemicals, Buildings & Infrastructure, Aerospace & Technology, and Industrial. We determined that this new organization would better support the needs of managing each unique set of customers that fall within each segment. As a result of the new organization, we subsequently realigned our internal reporting structures to enable our Chief Executive Officer, who is also our Chief Operating Decision Maker (“CODM”), to evaluate the performance of each of these segments and make appropriate resource allocations among each of the segments. For purposes of our goodwill impairment testing, we have determined that our operating segments are also our reporting units based on management’s conclusion that the components comprising each of our operating segments share similar economic characteristics and meet the aggregation criteria in accordance with ASC 350. Under the current organization, each LOB has a president that reports directly to the Company's Chairman and CEO or CODM. In addition, the sales function, which had been managed centrally for many years, is now managed on an LOB basis, and accordingly, the associated cost is now embedded in the new segments and reported to the respective LOB presidents. In addition, a portion of the costs of other support functions (e.g., finance, legal, human resources, and information technology) are allocated to each LOB using methodologies which, we believe, effectively attribute the cost of these support functions to the revenue-generating activities of the Company on a rational basis. The cost of the Company’s cash incentive plan, the Management Incentive Plan (“MIP”) and the expense associated with the Jacobs Engineering Group Inc. 1999 Stock Incentive Plan (“1999 SIP”) have likewise been charged to the LOBs except for those amounts determined to relate to the business as a whole (which amounts remain in corporate’s results of operations). Financial information for each LOB is reviewed by the CODM to assess performance and make decisions regarding the allocation of resources. The Company generally does not track assets by LOB, nor does it provide such information to the CODM. The CODM evaluates the operating performance of our LOBs using operating profit, which is defined as margin less “corporate charges” (e.g., the allocated amounts described above). The Company incurs certain selling, general and administrative (“SG&A”) costs which relate to its business as a whole which are not allocated to the LOBs. The following tables present total revenues and operating profit for each reportable segment (in thousands) and include a reconciliation of segment operating profit to total USGAAP operating profit by including certain corporate-level expenses and expenses relating to Restructuring and Other Charges (in thousands).
| For the Three Months Ended |  |  | For the Nine Months Ended |
| June 30, 2017 |  |  | July 1, 2016 |  |  | June 30, 2017 |  |  | July 1, 2016 |
Revenues from External Customers: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Aerospace & Technology | $ | 585,432 |  |  | $ | 667,785 |  |  | $ | 1,739,908 |  |  | $ | 2,007,440 |
Buildings & Infrastructure |  | 647,252 |  |  |  | 553,546 |  |  |  | 1,813,111 |  |  |  | 1,696,004 |
Industrial |  | 681,588 |  |  |  | 705,996 |  |  |  | 2,015,784 |  |  |  | 2,044,652 |
Petroleum & Chemicals |  | 600,479 |  |  |  | 766,546 |  |  |  | 1,800,119 |  |  |  | 2,575,474 |
Total | $ | 2,514,751 |  |  | $ | 2,693,873 |  |  | $ | 7,368,922 |  |  | $ | 8,323,570 |
| For the Three Months Ended |  |  | For the Nine Months Ended |
| June 30, 2017 |  |  | July 1, 2016 |  |  | June 30, 2017 |  |  | July 1, 2016 |
Operating Profit: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Aerospace & Technology | $ | 50,591 |  |  | $ | 53,741 |  |  | $ | 146,735 |  |  | $ | 156,861 |
Buildings & Infrastructure (1) |  | 56,173 |  |  |  | 50,168 |  |  |  | 138,957 |  |  |  | 133,083 |
Industrial |  | 32,347 |  |  |  | 28,444 |  |  |  | 81,549 |  |  |  | 68,216 |
Petroleum & Chemicals |  | 29,055 |  |  |  | 29,646 |  |  |  | 88,326 |  |  |  | 92,194 |
Total Segment Operating Profit |  | 168,166 |  |  |  | 161,999 |  |  |  | 455,567 |  |  |  | 450,354 |
Other Corporate Expenses |  | (28,991 | ) |  |  | (19,523 | ) |  |  | (54,392 | ) |  |  | (57,896 | )
Restructuring and Other Charges |  | (10,700 | ) |  |  | (32,920 | ) |  |  | (115,899 | ) |  |  | (136,671 | )
Total USGAAP Operating Profit |  | 128,475 |  |  |  | 109,556 |  |  |  | 285,276 |  |  |  | 255,787 |
Total Other (Expense) income |  | (1,079 | ) |  |  | (6,657 | ) |  |  | (10,276 | ) |  |  | (4,460 | )
Total Other (Expense) income - Restructuring |  | — |  |  |  | (92 | ) |  |  | (1,233 | ) |  |  | (277 | )
Earnings Before Taxes | $ | 127,396 |  |  | $ | 102,807 |  |  | $ | 273,767 |  |  | $ | 251,050 |
(1) | Excludes $1,246 and $23,844 in restructuring and other charges for the three and nine month periods ended June 30, 2017. See page 12.
Included in “Other Corporate Expenses” in the above table are costs and expenses which relate to general corporate activities as well as corporate-managed benefit and insurance programs. Such costs and expenses include: (i) those elements of SG&A expenses relating to the business as a whole; (ii) those elements of our incentive compensation plans relating to corporate personnel whose other compensation costs are not allocated to the LOBs; (iii) the amortization of intangible assets acquired as part of purchased business combinations; (iv) the quarterly variances between the Company’s actual costs of certain of its self-insured integrated risk and employee benefit programs and amounts charged to the LOBs; and (v) certain adjustments relating to costs associated with the Company’s international defined benefit pension plans. In addition, “Other Corporate Expenses” may also include from time to time certain adjustments to contract margins (both positive and negative) associated with projects where it has been determined, in the opinion of management, that such adjustments are not indicative of the performance of the related LOB and therefore should not be attributed to the LOB. The following tables present total services revenues for each reportable segment for the three months and nine months ended June 30, 2017 and July 1, 2016 (in thousands).
| For the Three Months Ended |  |  | For the Nine Months Ended |
| June 30, 2017 |  |  | June 30, 2017 |
| Aerospace & Technology |  |  |  |  | Buildings & Infrastructure |  |  |  |  | Industrial |  |  |  |  | Petroleum & Chemicals |  |  | Total |  |  | Aerospace & Technology |  |  | Buildings & Infrastructure |  |  | Industrial |  |  | Petroleum & Chemicals |  |  | Total |
Technical Professional Services Revenues |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Project Services | $ | 317,343 |  |  |  |  | $ | 587,543 |  |  |  |  | $ | 234,670 |  |  |  |  | $ | 307,806 |  |  | $ | 1,447,362 |  |  | $ | 799,842 |  |  | $ | 1,633,543 |  |  | $ | 617,970 |  |  | $ | 1,020,407 |  |  | $ | 4,071,762 |
Process, Scientific, and Systems Consulting |  | 121,450 |  |  |  |  |  | — |  |  |  |  |  | — |  |  |  |  |  | 11,016 |  |  |  | 132,466 |  |  |  | 506,250 |  |  |  | — |  |  |  | — |  |  |  | 27,416 |  |  |  | 533,666 |
Total Technical Professional Services Revenues |  | 438,793 |  |  |  |  |  | 587,543 |  |  |  |  |  | 234,670 |  |  |  |  |  | 318,822 |  |  |  | 1,579,828 |  |  |  | 1,306,092 |  |  |  | 1,633,543 |  |  |  | 617,970 |  |  |  | 1,047,823 |  |  |  | 4,605,428 |
Field Services Revenues |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Construction |  | 23,228 |  |  |  |  |  | 56,067 |  |  |  |  |  | 352,002 |  |  |  |  |  | 281,390 |  |  |  | 712,687 |  |  |  | 78,005 |  |  |  | 168,526 |  |  |  | 1,118,697 |  |  |  | 751,932 |  |  |  | 2,117,160 |
Operations and Maintenance ("O&M") |  | 123,411 |  |  |  |  |  | 3,642 |  |  |  |  |  | 94,916 |  |  |  |  |  | 267 |  |  |  | 222,236 |  |  |  | 355,811 |  |  |  | 11,042 |  |  |  | 279,117 |  |  |  | 364 |  |  |  | 646,334 |
Total Field Services Revenues |  | 146,639 |  |  |  |  |  | 59,709 |  |  |  |  |  | 446,918 |  |  |  |  |  | 281,657 |  |  |  | 934,923 |  |  |  | 433,816 |  |  |  | 179,568 |  |  |  | 1,397,814 |  |  |  | 752,296 |  |  |  | 2,763,494 |
Total Revenues | $ | 585,432 |  |  |  |  | $ | 647,252 |  |  |  |  | $ | 681,588 |  |  |  |  | $ | 600,479 |  |  | $ | 2,514,751 |  |  | $ | 1,739,908 |  |  | $ | 1,813,111 |  |  | $ | 2,015,784 |  |  | $ | 1,800,119 |  |  | $ | 7,368,922 |
| For the Three Months Ended |  |  | For the Nine Months Ended |
| July 1, 2016 |  |  | July 1, 2016 |
| Aerospace & Technology |  |  |  |  | Buildings & Infrastructure |  |  |  |  | Industrial |  |  |  |  | Petroleum & Chemicals |  |  | Total |  |  | Aerospace & Technology |  |  | Buildings & Infrastructure |  |  | Industrial |  |  | Petroleum & Chemicals |  |  | Total |
Technical Professional Services Revenues |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Project Services | $ | 35,311 |  |  |  |  | $ | 503,336 |  |  |  |  | $ | 222,263 |  |  |  |  | $ | 465,324 |  |  | $ | 1,226,234 |  |  | $ | 502,105 |  |  | $ | 1,570,143 |  |  | $ | 646,543 |  |  | $ | 1,402,110 |  |  | $ | 4,120,901 |
Process, Scientific, and Systems Consulting |  | 371,954 |  |  |  |  |  | — |  |  |  |  |  | — |  |  |  |  |  | 15,335 |  |  |  | 387,289 |  |  |  | 790,533 |  |  |  | — |  |  |  | — |  |  |  | 47,825 |  |  |  | 838,358 |
Total Technical Professional Services Revenues |  | 407,265 |  |  |  |  |  | 503,336 |  |  |  |  |  | 222,263 |  |  |  |  |  | 480,659 |  |  |  | 1,613,523 |  |  |  | 1,292,638 |  |  |  | 1,570,143 |  |  |  | 646,543 |  |  |  | 1,449,935 |  |  |  | 4,959,259 |
Field Services Revenues |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Construction |  | 7,278 |  |  |  |  |  | 37,518 |  |  |  |  |  | 378,289 |  |  |  |  |  | 285,795 |  |  |  | 708,880 |  |  |  | 77,464 |  |  |  | 88,383 |  |  |  | 1,114,312 |  |  |  | 1,124,293 |  |  |  | 2,404,452 |
Operations and Maintenance ("O&M") |  | 253,242 |  |  |  |  |  | 12,692 |  |  |  |  |  | 105,444 |  |  |  |  |  | 92 |  |  |  | 371,470 |  |  |  | 637,338 |  |  |  | 37,478 |  |  |  | 283,797 |  |  |  | 1,246 |  |  |  | 959,859 |
Total Field Services Revenues |  | 260,520 |  |  |  |  |  | 50,210 |  |  |  |  |  | 483,733 |  |  |  |  |  | 285,887 |  |  |  | 1,080,350 |  |  |  | 714,802 |  |  |  | 125,861 |  |  |  | 1,398,109 |  |  |  | 1,125,539 |  |  |  | 3,364,311 |
Total Revenues | $ | 667,785 |  |  |  |  | $ | 553,546 |  |  |  |  | $ | 705,996 |  |  |  |  | $ | 766,546 |  |  | $ | 2,693,873 |  |  | $ | 2,007,440 |  |  | $ | 1,696,004 |  |  | $ | 2,044,652 |  |  | $ | 2,575,474 |  |  | $ | 8,323,570 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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